China on Monday expressed hope that the United States would work toward constructive trade results, as the clock ticks down on a temporary deal struck between both nations last month, set to lapse on Tuesday.
“We hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state… and strive for positive outcomes based on equality, respect and mutual benefit,” foreign ministry spokesman Lin Jian said in a statement.
With the 90-day trade truce between the United States and China set to expire on August 12, both sides are scrambling to prevent a renewed escalation in their long-running tariff war. The agreement, struck last month, temporarily paused additional duties while negotiators sought common ground on issues ranging from market access to intellectual property protections.
Talks in Stockholm last week brought together U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng in an attempt to secure an extension. While the discussions produced no formal breakthrough, officials left the door open for another pause, with Beijing expressing hope for what it called “positive” outcomes that would benefit both economies.
China’s position has been strengthened by fresh trade data showing a 7.2 percent rise in exports in July, a surprising gain at a time when global demand has been softening. Economists caution, however, that much of the increase may be the result of exporters rushing orders ahead of possible tariff hikes if the truce lapses.
Read also: China Begins Two Days Of Military Drills Around Taiwan
Meanwhile, the trade dispute is unfolding against a backdrop of broader U.S. tariff actions under President Trump’s sweeping use of the International Emergency Economic Powers Act (IEEPA). In recent weeks, Washington has sharply increased duties on a range of countries beyond China—raising tariffs to 35 percent on certain Canadian goods, 50 percent on key Brazilian exports, 25 percent on Indian products, 20 percent on goods from Taiwan, and 39 percent on Swiss imports. Economists warn that the wider tariff net is pushing up consumer prices, with some estimates suggesting American households could pay an extra $1,300 this year as a result.
The aggressive trade posture has also drawn legal challenges, with federal courts questioning the constitutionality of the IEEPA-based tariffs. While the rulings have not yet halted the measures, ongoing appeals add further uncertainty to the global trading environment.
If no new agreement is reached before the August 12 deadline, U.S. tariffs on Chinese goods could jump from the current 30 percent to as high as 145 percent, while Beijing is expected to reintroduce steep retaliatory duties of its own. Analysts warn that such an outcome would likely trigger fresh market turbulence, unsettle supply chains, and intensify inflationary pressures worldwide.